{"id":1225,"date":"2020-02-16T13:03:01","date_gmt":"2020-02-16T09:03:01","guid":{"rendered":"https:\/\/www.techxmedia.com\/?p=1225"},"modified":"2025-04-16T16:08:56","modified_gmt":"2025-04-16T12:08:56","slug":"gartner-forecasts-public-cloud-services-to-grow-in-mena-region","status":"publish","type":"post","link":"https:\/\/techxmedia.com\/en\/gartner-forecasts-public-cloud-services-to-grow-in-mena-region\/","title":{"rendered":"Public Cloud Services in the MENA region to Grow 21% in 2020"},"content":{"rendered":"\n

Public cloud services revenue<\/a> in the Middle East and North Africa (MENA) will total nearly $3 billion\nin 2020, an increase of 21% year over year, according to Gartner, Inc. <\/p>\n\n\n\n

\u201cGovernment initiatives such as Smart Dubai, Smart\nAbu Dhabi, Israel\u2019s Cloud Strategy<\/a> and\nBahrain\u2019s Cloud First Policy of 2019<\/a>\nhave bolstered cloud adoption among large organizations in the region,\u201d said Sid\nNag, research vice president at Gartner. \u201cThe move to digital business by\norganizations is driving cloud spend, where cloud is a key enabler and the\nplatform that supports digital technologies.\u201d<\/p>\n\n\n\n

Organizations are also increasingly moving their\napplications and workloads to the public cloud as concerns around security and\ngovernance dissipate further. The collective economic goal of the MENA region\nto become more technology- and data-centric has been a cornerstone to this\nrapid acceptance of both the private and public cloud<\/a>.<\/p>\n\n\n\n

In addition, small and midsize businesses (SMBs) in\nMENA have started to increase their spending in public cloud services. SMBs in\nthe region are focusing their investments in cloud deployments that will enable\nfaster business analytics<\/a> and artificial intelligence<\/a>,\nboth of which are key growth drivers for public cloud in the region. <\/p>\n\n\n\n

Software as a service (SaaS)<\/a> accounts for 53% of the total public cloud service revenue forecast in MENA\nand is set to total $1.6 billion in 2020 (see Table 1). \u201cSaaS products are\ntypically sold via subscription, allowing companies to avoid large up-front\nlicensing fees and capital costs. The cost-effectiveness of SaaS is one of the\nmotivations for MENA organizations to increase their spending in the segment,\u201d\nadded Mr. Nag. <\/p>\n\n\n\n

Table 1. MENA Public Cloud Service Revenue Forecast,\n2019-2021 (Millions of U.S. Dollars)<\/strong><\/p>\n\n\n\n

\n Segment<\/strong>\n <\/td>\n 2019 <\/strong>\n <\/td>\n 2020 <\/strong>\n <\/td>\n 2021 <\/strong>\n <\/td><\/tr>
\n Cloud business process services (BPaaS) total\n <\/td>\n 388\n <\/td>\n 440\n <\/td>\n 495\n <\/td><\/tr>
\n Cloud application infrastructure services (PaaS) total\n <\/td>\n 352\n <\/td>\n 434\n <\/td>\n 524\n <\/td><\/tr>
\n Cloud application services (SaaS) total\n <\/td>\n 1,312\n <\/td>\n 1,585\n <\/td>\n 1,895\n <\/td><\/tr>
\n Cloud management and security services total\n <\/td>\n 182\n <\/td>\n 214\n <\/td>\n 251\n <\/td><\/tr>
\n Cloud system infrastructure services (IaaS) total\n <\/td>\n 226\n <\/td>\n 313\n <\/td>\n 421\n <\/td><\/tr>
\n Grand Total<\/strong>\n <\/td>\n 2,460<\/strong>\n <\/td>\n 2,986<\/strong>\n <\/td>\n 3,587<\/strong>\n <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Source: Gartner\n(February 2020)<\/p>\n\n\n\n

CRM and ERP Remain Growth Drivers <\/strong><\/a><\/p>\n\n\n\n

Customer relationship management<\/a> (CRM) and enterprise resource planning<\/a> (ERP) remain the top\ntwo segments driving the growth of SaaS in MENA. Gartner predicts that CRM\nsoftware will represent 15% of total public cloud service revenue in MENA in\n2020. This figure will continue to go up as businesses keep enhancing their customer\nexperience. <\/p>\n\n\n\n

ERP accounts for 12% of the overall public\ncloud service revenue forecast in MENA in 2020. \u201cThis is due to the fact that\nmost independent software vendors have converted their ERP applications from on-premises,\nlicense-based offerings to cloud-based SaaS offerings,\u201d said Mr. Nag.<\/p>\n\n\n\n

Business intelligence (BI) applications<\/a> is an emerging growth\narea for public cloud services in MENA. Revenue is on pace to total $29 million\nin 2020, an increase of 37% from 2019. This segment is the fastest-growing\nsegment among SaaS offerings in the region in 2020. \u201cWhile BI revenue is\ncurrently low in MENA, it is expected to achieve 30% growth over the next three\nyears as local businesses leverage BI-based analytics to make smarter decisions\nand optimize their business operations,\u201d said Mr. Nag.<\/p>\n","protected":false},"excerpt":{"rendered":"

Government initiatives such as Smart Dubai, Smart Abu Dhabi, Israel\u2019s Cloud Strategy and Bahrain\u2019s Cloud First Policy of 2019 have bolstered cloud adoption among large organizations in the region,\u201d said Sid Nag, research vice president at Gartner. <\/p>\n","protected":false},"author":8,"featured_media":1230,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[154,9718],"tags":[190,393,392,397,396],"contributor":[],"class_list":["post-1225","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cloud-computing","category-government","tag-gartner","tag-menaregion","tag-publiccloudservices","tag-smartabudhabi","tag-smartdubai"],"featured_image_src":"https:\/\/techxmedia.com\/en\/wp-content\/uploads\/2020\/02\/Sid-Nag-min-1-e1582102869337.jpg","author_info":{"display_name":"Rabab","author_link":"https:\/\/techxmedia.com\/en\/author\/rabab\/"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/techxmedia.com\/en\/wp-json\/wp\/v2\/posts\/1225","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/techxmedia.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/techxmedia.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/techxmedia.com\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/techxmedia.com\/en\/wp-json\/wp\/v2\/comments?post=1225"}],"version-history":[{"count":0,"href":"https:\/\/techxmedia.com\/en\/wp-json\/wp\/v2\/posts\/1225\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/techxmedia.com\/en\/wp-json\/wp\/v2\/media\/1230"}],"wp:attachment":[{"href":"https:\/\/techxmedia.com\/en\/wp-json\/wp\/v2\/media?parent=1225"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/techxmedia.com\/en\/wp-json\/wp\/v2\/categories?post=1225"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/techxmedia.com\/en\/wp-json\/wp\/v2\/tags?post=1225"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/techxmedia.com\/en\/wp-json\/wp\/v2\/contributor?post=1225"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}